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Mexico City Rolls Out Rent Caps and Stricter Airbnb Rules to Ease Housing Crisis

The measures include legally binding inflation-linked rent controls designed to shield longtime tenants from extreme price hikes

A demonstrator kicks in a bank storefront window at the end of peaceful protest that turned violent against gentrification, as the increase in remote workers has risen prices and increased housing demand in neighborhoods like Condesa and Roma, in Mexico City, Friday, July 4, 2025. (AP Photo/Aurea Del Rosario)
Overtourism In Mexico: Locals Protest Against Tourist Influx; Here's How You Can Be A Responsible Traveller. (Image: Canva)
Hundreds of people demonstrated in Mexico City against gentrification that they blamed on foreign visitors

Overview

  • Mayor Clara Brugada plans to enforce existing rules limiting rent increases to the rate of inflation and will propose a fair rent law to stabilize the market.
  • Regulators will tighten oversight of short-term rental platforms such as Airbnb to curb tourist-driven price surges.
  • The strategy designates central neighborhoods like Condesa and Roma for accelerated public housing development to address supply shortages.
  • Early July protests against gentrification turned violent, resulting in vandalism of local businesses including a Starbucks outlet.
  • President Claudia Sheinbaum condemned xenophobic tactics at demonstrations while affirming the legitimacy of residents’ demands for housing reform.